Loading...
HomeMy WebLinkAbout2014-01-27 Ordinance 5231Ordinance No. 5231 Ordinance of the Council of the City of Palo Alto Adopting New Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) ofthe Palo Alto Municipal Code to Implement Government Code Section 65915 The Counc~1 of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. The State Density Bonus Law (Section 65915 of the Government Code) was first adopted in 1979. The law allows developers who offer affordable units in their developments a density bonus above what the zoning ordinance would typically allow. Originally, developers received a density bonus of 25% if they met the density bonus requirements. B. In 2004, the State Legislature passed SB 1818, which significantly amended Section 65915 of the Government Code. The significant changes to the law, effective on January 1, 2005, included: • A higher maximum market-rate unit density bonus of 35% for a lower percentage of affordable units provided; • A sliding scale of market-rate density bonus percentages from 20%-35% depending on the percentage of affordable units provided; • Provision for up to three (3) development concessions or incentives, depending on the percentage of affordable units provided; • Granting the developer a density bonus if they donate land for very low income housing; and • Required jurisdictions to implement Density Bonus law through local codes. C. In the past, the City has applied the Density Bonus law on an ad hoc basis to both market rate and affordable developments. Palo Alto Family Apartments, located at 801 Alma Street and developed by Eden Housing, is a 50 unit affordable rental development. Eden requested concessions to encroach into the required setbacks, exceed the maximum floor area ratio (FAR) and to not provide private useable open space. The development at 195 Page Mill Road also requested concessions to allow residential uses in the General Manufacturing (GM) zoning district and to exceed the maximum FAR in return for providing 17 affordable housing units (20% ofthe total units). D. The 2007-2014 Housing Element Update inc'udes a program (Program 3.1.10) requiring that a density bonus ordinance be adopted that is consistent with 1 140113 jb 0131158 Rev. January 13, 2014 Government Code 65915. Staff anticipates that density bonus will be an important tool to help the City accommodate its Regional Housing Needs Allocation (RHNA) numbers. SECTION 2. Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read as follows: Sections: ' 18.15.010 18.15.020 18.15.030 18.15.040 18.15.050 18.15.060 18.15.070 18.15.080 18.15.090 18.15.100 18.15.010 Chapter 18.15 Residential Density Bonus Purpose Definitions Density Bonuses Development Standards for Affordable Units Development Concessions and Incentives Waiver/Modification of Development Standards Child Care Facilities Application Requirements Review Procedures Regulatory Agreement Purpose The purpose of this chapter is to: (a) Comply with the state density bonus law under California Government Code section 65915. (b) Establish procedures for implementing state density bonus requirements as set forth in California Government Code Section 65915, as amended. (c) Facilitate the development of affordable housing consistent with the goals, objectives, and policies ofthe City's Comprehensive Plan Housing Element. 18.15.020 Definitions Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: (a) "Affordable Rent" means monthly rent, including a reasonable allowance for utilities and all fees for housing services, for rental Restricted Affordable Units reserved for Very Low or Lower Income Households, that does not exceed the following: 2 140113 jb 0131158 Rev. January 13, 2014 (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 60 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (b) "Affordable Sales Price" means the maximum sales price at which Very Low, Lower and Moderate Income Households can qualify for the purchase of Restricted Affordable Units as set forth in the City of Palo Alto's Below Market Rate Housing Program. The sales price shall be considered affordable only if it is based on a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes and assessments, fire and casualty insurance, homeowners association fees, property maintenance and repairs, and a reasonable allowance for utilitiesL all as determined by the City, that are equal to or less than: (i) Very Low Income: 50 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (ii) Lower Income: 80 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (iii) Moderate Income: 120 percent of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30 percent and divided by 12. (c) "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities who seeks Development permits or approvals from the City of Palo Alto. (d) "Approval Authority" means the person or body that is authorized to approve a Development as specified in the City of Palo Alto Municipal Code. Approval Authority shall also include recommending bodies such as the Architectural Review Board and the Planning and Transportation Commission. (e) "Below Market Rate Housing Program" means Chapter 18.14 ofthe Palo Alto Municipal Code and the Administrative Guidelines for the Below Market Rate Program. 3 140113 jb 0131158 Rev. January 13, 2014 (f) "Child Care Facility" means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. (g) "Concession or Incentive" as used interchangeably means such regulatory concessions as specified in Government Code Section 65915(k) to include: (i) A reduction of site Development Standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufficient and actual cost reductions; (ii) Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the Development will be located; and (iii) Other regulatory Concessions proposed by the applicant or the City which result in identifiable financially sufficient, and actual cost reductions. (h) "Density Bonus" means a density increase over the Maximum Residential Density granted pursuant to Government Code Section 65915 and this Ordinance. (i) "Density Bonus Units" means those dwelling units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Residential Density for the development site. (j) "Development" means all developments pursuant to ,a proposal to construct or place five (5) or more additional dwelling units on a lot or contiguous lots including, without limitation, a planned unit development, site plan, subdivision, or conversion of a non- residential building to dwelling units. (k) "Development Standard" means a site or construction condition such as a height limitation, a setback, or a floor-area ratio, that applies to a Development pursuant to any ordinance, general plan element, specific plan, charter, or other City condition, law, policy, resolution, or regulation. A "site and construction condition" is a development regulation or law that specifies the physical development of a site and buildings on the site in a Development. 4 140113 jb 0131158 Rev. January 13, 2014 (I) "Discretionary Permit" means any permit issued for the Development which requires the exercise of judgment or deliberation from the Approval Authority, including but not limited to conditional use permits, variances, site plans, design review, planned development permits, general and specific plan approvals and amendments, zoning amendments, and tentative and parcel maps. (m) "Lower, Very Low, or Moderate Income" means annual income of a household that does not exceed the maximum income limits for the income category, as adjusted for household size, applicable to Santa Clara County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5, SOlOS, or .50093 of the California Health and Safety Code. (n) "Maximum Residential Density" means the maximum number of dwelling units permitted in the Development by the City's Comprehensive Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this Chapter. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the City'S Comprehensive Plan, the Land Use Element density shall prevail. (0) "Non-Restricted Unit" means all dwelling units within a Development excluding the Restricted Affordable Units. (p) "Qualifying Mobilehome Park" means a mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 and 799.5 of the Civil Code. (q) "Qualifying Resident" means senior citizens or other persons eligible to reside in a Senior Citizen Housing Development or Qualifying Mobilehome Park. (r) "Regulatory A~reement" means a recorded and legally binding agreement between an applicant and the City to ensure that the requirements of this Chapter are satisfied. The Regulatory Agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, location, terms and conditions of affordability, and production schedule. (s) "Restricted Affordable Unit" means a dwelling unit within a Development which will be available at an Affordable Rent or Affordabl.e Sales Price for sale or rent to Very Low, Lower or Moderate Income households. (t) "Senior Citizen Housing Development" means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and 5 140113 jb 0131158 Rev. January 13, 2014 implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. 18.15.030 Density Bonuses This Section describes the Density Bonuses that will be provided, at the request of an applicant, when that applicant provides Restricted Affordable Units as described below. . (a) The City shall grant a 20 percent (20%) Density Bonus when an applicant for a Development offive (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915: (i) At least 10 percent (10%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Lower Income Households. For each one percent (1%) increase in the percentage of restricted Lower Income units, a Development will receive an additional one and one-half percent (1.5%) density bonus up to thirty-five percent (35%) of the Maximum Residential Density; or (ii) At least five percent (5%) of the total dwelling units of the Development as Restricted Affordable Units affordable to Very Low Income Households. For each one percent (1%) increase in the percentage of restricted Very Low Income units, a Development will receive an additional two and one- half percent (2.5%) density bonus up to thirty-five percent (35%) of the . Maximum Residential Density; or (iii) A Senior Citizen Housing Development; or (iv) A Qualifying Mobilehome Park. (b) The City shall grant a five percent (5%) Density Bonus when an applicant for a Development of five (5) or more additional dwelling units seeks and agrees to construct, in accordance with the requirements of this Section and Government Code Section 65915, at least 10 percent (10%) of the total dwelling units in a common interest development as defined in California Civil Code Section 4100 for Moderate Income Households, provided that all dwelling units in the Development are offered to the public for purchase. For each one percent (1%) increase in the percentage of restricted Moderate Income units, a Development will re.ceive an additional one percent (1%) density bonus up to thirty-five percent (35%) ofthe Maximum Residential Density. (c) No additional Density Bonus shall be authorized for a Senior Citizen Development or Qualifying Mobilehome Park beyond the Density Bonus authorized by subsection (a) of this Section. 6 140113 jb 0131158 Rev. January 13, 2014 (d) When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next highest number. An applicant may elect to receive a Density Bonus that is less than the amount permitted by this Section; however, the City shall not be required to similarly reduce the number of Restricted Affordable Units required to be dedicated pursuant to this Section and Government Code Section 65915(b). (e) Each Development is entitled to only one Density Bonus, which shall be selected by the applicant based on the percentage of Very Low Restricted Affordable Units, Lower Income Restricted Affordable Units, or Moderate Income Restricted Affordable Units, or the Development's status as a Senior Citizen Housing Development or Qualifying Mobilehome Park. Density bonuses from more than one category may not be combined. In no case shalla Development be entitled to a Density Bonus of more than thirty-five percent (35%). (f) The Density Bonus Units shall not be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. (g) Any Restricted Affordable Unit provided pursuant to the City's Below Market Rate Housing Program shall be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus or other entitlement under this Chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a Density Bonus or other entitlement under this Chapter. (h) Certain other types of development activities are specifically eligible for a Density Bonus pursuant to State law: (i) A Development may be eligible for a Density Bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (ii) A condominium conversion may be eligible for a Density Bonus or Concession pursuant to the requirements set forth in Government Code Section 65915.5. (i) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part ofthe rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone. (j) Notwithstanding any provision of this Chapter, all Developments must satisfy all applicable requirements of the City's Below Market Rate Housing Program, which may impose requirements for Restricted Affordable Units in addition to those required to receive a Density Bonus or Concessions. 7 140113 jb 0131158 Rev. January 13, 2014 Table 1 summarizes the density bonus provisions described in this Section. Table 1 Density Bonus Summary Table Additional Percentage Bonus for of Restricted Each 1% Units Minimum Percentage Increase in Required for Percentage of of Density Restricted' Maximum Restricted Affordable Restricted Bonus Affordable 35% Density Units or Category Affordable Units Granted Units Bonus Very Low Income 5% 20% 2.50% 11% Lower Income 10% 20% 1.50% 20% Moderate Income 10% 5% 1% 40% Senior Citizen Housing 100% 20% ------------ Qualifying Mobile Park 100% 20% ------------ Note: A density bonus may be selected from only one category up to a maximum of 35% of the Maximum Residential Density. 18.15.040 Development Standards for Affordable Units (a) Restricted Affordable Units shall be constructed concurrently with Non- 'Restricted Units unless both the City and the applicant agree within the Regulatory Agreement to an alternative schedule for development. (b) Moderate Income Restricted Affordable Units ~hall remain restricted and affordable to the designated income group for a minimum period of 59 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very Low and Lower Restricted Affordable Units shall remain restricted and affordable to the designated income group for a period of 30 years for both rental and for-sale units (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). (c) In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City's Below Market Rate Housing Program shall be used, unless the Development is subject to different assumptions imposed by other governmental regulations. (d) Restricted Affordable Units shall be built on-site and be dispersed within the Development, except as permitted in subsection (e) of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non-Restricted Units in the Development; except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, square footage, appearance and 8 140113 jb 0131158 Rev. January 13, 2014 general quality of the Restricted Affordable Units shall be compatible with the design of the Non-Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this Chapter. (e) A Regulatory Agreement, as described in Section 18.15.100, shall be made a condition of the Discretionary Permits for all Developments pursuant to this Chapter. The Regulatory Agreement s.hall be recorded as a restriction on the Development. The Regulatory Agreement shall be consistent with the City's Below Market Rate Housing program guidelines. 18.15.050 Development Concessions and Incentives This Section includes provisions for providing Concessions or Incentives pursuant to Government Code Section 65915. (a) By Right Parking Incentives. Upon request by the applicant, a Development that is eligible for a Density Bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. (b) Other Incentives and Concessions. A Development is eligible for other Concessions or Incentives as follows: 140113 jb 0131158 (i) One Concession or Incentive for a Development that makes at least ten percent (10%) of the total dwelling units affordable to Lower Lncome households; or at least five percent (5%) of the total dwelling units affordable to Very Low Income households; or at least ten percent (10%) of the total dwelling units affordable to Moderate Income households in a common interest development. (ii) Two Concessions or Incentives for a Development that makes at least twenty percent (20%) of the total dwelling units affordable to Lower Income households; or at least ten percent (10%) of the total dwelling units affordable to Very Low Income households; or at least twenty percent (20%) of the total dwelling units affordable to Moderate Income households in a common interest development. 9 Rev. January 13, 2014 (v) Reduction in daylight plane requirements not to exceed 25% ofthe length of the adjacent lot line, so long as the intrusion is consistent with· applicable design standards and guidelines, unless adjacent to R-1, R-2, RMD and other low density residential zones; (vi) Up to fifty percent (50%) increase over the maximum site coverage requirement or up to the square footage of the Restricted Affordable Units, whichever is less; (d) The setbacks referenced in this Section shall not include Special Setbacks as defined in Section 20.08.020. (e) The setbacks referenced in this Section shall only apply to the residential portion of any mixed use (residential and non-residential) development where it is feasible to setback portions of the development differently. (f) Nothing in this Chapter shall. be construed to require the provision of direct financial Concessions for the Development, including the provision of publicly owned land by the City or the waiver offees or dedication requirements. 18.15.060 Waiver/Modification of Development Standards An applicant may apply for a waiver or modification of Development Standards that will have the effect of physically precluding the construction of a Development at the densities or with the Concessions or Incentives permitted by this Chapter. The developer must demonstrate that Development Standards that are requested to be waived or modified will have the effect of physically precluding the construction of a Development meeting the criteria of subsection (a) of Section 18.15.030 at the densities or with the Concessions or Incentives permitted by this Chapter. 18.15.070 Child Care Facilities (a) When an applicant proposes to construct a Development that is eligible for a Density Bonus under Section 18.15.030 and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the Development, the City shall grant either: 140113 jb 0131158 (i) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child care facility; or (ii) An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the child care facility. 11 Rev. January 13, 2014 140113 jb 0131158 (iv) If a Concession or Incentive is requested, a brief explanation as to the actual cost reduction achieved through the Concession or Incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units. (v) If a waiver or modification is requested, a brief explanation of why the Development Standard would physically preclude the construction of the Development with the Density Bonus, Incentives, and Concessions requested. (vi) Site plan showing location of market-rate units, Restricted Affordable Units, and Density Bonus units within the proposed Development; (vii) Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability; (viii) For Concessions and Incentives that are not included within the menu of Incentives/Concessions set forth in subsection (c) of Section 18.15.050, the application requires the submittal of the project proforma to the Director, providing evidence that th.e requested Concessions and Incentives result in identifiable, financially sufficient, and actual cost reductions. The cost of reviewing the project proforma, including, but not limited to, the cost to the City of hiring a consultant to review the financial data, shall be borne by the applicant. The proforma information shall include all of the following items: (A) The actual cost reduction achieved through the Concession; (B) Evidence that the cost reduction allows the applicant to provide affordable rents or affordable sales prices; and (C) Other information requested by the Planning Director. The Planning Director may require additional financial information include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the financial information; (ix) If a waiver or modification of a Development Standard is requested, the. applicant shall provide evidence that the Development Standard for which the waiver is requested will have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions requested; 13 Rev. January 13, 2014 (x) If a Density Bonus or Concession is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made; (xi) If a density bonus or Concession is requested for a child care fac;ility, the application shall show the location and square footage of the child care facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made. (xii) If a Density Bonus or Concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met. (b) In accordance with state law, neither the granting of a Concession, Incentive, waiver, modification, or revised parking standard, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. (c) The Planned Community (PC) zone district is intended to accommodate developments requiring flexibility under controlled conditions not attainable under other zoning districts. Because of the flexible nature of the PC zone, which determines site specific requirements including density,the Chapter does not apply to this zoning district. (d) This Chapter implements State Density Bonus law. Any Density Bonus, Incentive, Concession, revised parking standard, waiver, or modification sought by an Applicant shall be made pursuant to this Chapter and may not be combined with similar requests under State Density Bonus law. 18.15.090 Review Procedures An application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall be acted upon by the Approval Authority concurrently with the application for the first Discretionary Permit. The granting of a Density Bonus shall not be deemed approval of the entire Project or approval of any subsequent discretionary permit. (a) Before approving an application for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard, the Approval Authority shall make the following findings, as applicable: 140113 jb 0131158 (i) The Development is eligible for the Density Bonus and any Concessions, waivers, modifications, or revised parking standards requested. 14 Rev. January 13,2014 (ii) Any requested Concession or Incentive will result in identifiable, financially sufficient, and actual cost reductions based upon the financial analysis and documentation provided. The City finds that the Concessions and Incentives included in Section 18.50.050(c) will result in identifiable, financially sufficient, and actual cost reductions. (iii) If the Density Bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met. . (iv) If the Density Bonus, Concession or Incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in Government Code Section 65915(h) have been met. (v) If the Concession or Incentive includes mixed-use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met. (vi) If a waiver or modification is requested, a finding that the Development Standards for which the waiver is requested would have the effect of physically precluding the construction of the Development with the Density Bonus and Concessions permitted. (b) Any granted Density Bonus and/or Concession(s) shall terminate with the demolition, destruction or other removal of the structure receiving the Density Bonus and/or Concession. (c) If the findings required by subsection (a) of this Section cannot be made, the Approval Authority may deny an application for a Concession, Incentive, waiver or modification only if it makes one ofthe following written findings, supported by substantial evidence: 140113 jb 0131158 (i) The Concession, Incentive, waiver or modification is not required to provide for Affordable Rents or Affordable Sales Prices; or (ii) The Concession,lncentive, waiver or modification would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and ·there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Development unaffordable to Low and Moderate Income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the Development was deemed complete; or 15 Rev. January 13, 2014 (iii) The Concession, Incentive, waiver or modification is contrary to state or federal law. (c) If the Approval Authority is not the City Council, any decision denying a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard may be appealed to the City Council within fourteen days of the date of the decision. 18.15.100 Regulatory Agreement (a) Applicants for a Density Bonus, Incentive, Concession, waiver, modification or revised parking standard shall enter into a Regulatory Agreement with the City. The terms of the draft agreement shall be approved as to form by the City Attorney and reviewed and revised as appropriate by the Director of Planning and Community Environment, who shall formulate a recommendation to the Approval Authority for final approval. (b) Following execution ofthe agreement by all parties, the completed Density Bonus Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Development. (c) The approval of the Regulatory Agreement shall take place prior to tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to approval of the final Discretionary Permit. The Regulatory Agreement shall be binding to all future owners a'nd successors in interest. (d) The Regulatory Agreement shall be consistent with the guidelines ofthe City's Below Market Rate Program and shall include at a minimum the following: 140113 jb 0131158 (i) The total number of dwelling units approved for the Development, including the number of Restricted Affordable Units; (ii) A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price; (iii) The location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units; (iv) Term of use restrictions for Restricted Affordable Units of at least 59 years for Moderate Income units and at I'east 30 years for Low and Very Low units; (v) A schedule for completion and occupancy of Restricted Affordable Units; 16 Rev. January 13,2014 (vi) A description of any Concession, Incentive, waiver, modification, or revised parking standard, if any, being provided by the City; (vii) A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and (viii) Other provisions to ensure implementation and compliance with this Section. SECTION 3. CEQA. The proposed Ordinance revises the requirements for granting a residential density bonus to complywith revisions to Government Code Section 65915 enacted by the Legislature through the adoption of Senate Bill 1818. Adoption of the draft density bonus codifies allowances that developers have been able to use in housing developments since 2005. Further, the revisions modify the criteria and incentives offered to qualifying developments but do not authorize construction not already permitted under the City's existing codes. Also, it is uncertain how many project applicants will seek to utilize the provisions of State law and this Ordinance and where such projects might be located in the City. Further, each individual project will be subject to its own environmental review. Consequently, this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 ofthe California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have a significant effect on the environment. SECTION 4. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. II II II II II II II 17 140113 jb 0131158 Rev. January 13, 2014